Khazanah raises US$320.8 million from issuance of exchangeable sukuk

KUALA LUMPUR: Khazanah Nasional Bhd (Khazanah) has successfully priced the exchangeable sukuk of US$320.8 million (RM1.27 billion), which will be issued via a Labuan-incorporated independent special purpose vehicle, Cindai Capital Ltd.

In a statement yesterday, Khazanah said the sukuk would reference the value of H-shares in CITIC Securities Co Ltd, China’s largest securities brokerage firm.

The sukuk will be listed on the Singapore Exchange Securities Trading Ltd, Labuan International Financial Exchange Inc and Bursa Malaysia (under the Exempt Regime), it said.

The sukuk was structured based on the principle of Wakalah and provides the sukuk holder with the option to receive cash or shares upon exchange, said Khazanah.

Khazanah Managing Director, Tan Sri Azman Mokhtar said the strong demand for the exchangeable sukuk underscored the investors’ confidence in Khazanah’s creditworthiness.

“It was opportune for us to successfully price the deal on the back of positive market sentiments in China and Hong Kong,” he said.

Khazanah said the sukuk, with a tenure of five years and an investor put option exercisable at the end of year three, was priced through an accelerated bookbuilding process.

“Structured with a zero periodic payment and 0.00 per cent yield to maturity, the exchangeable sukuk achieved the tightest end of the initial guidance at an exchange premium of 40 per cent above the volume weighted average price of CITIC Securities shares on Jan 17, this year. — Bernama THE Kuala Lumpur Tin Market (KLTM) yesterday closed unchanged, amidst the overnight uptrend on the London Metal Exchange (LME), said a dealer.

While the KLTM was flat at US$20,370 per tonne, the tin price on the LME rose US$20 to settle at US$20,495 per tonne.

“On the local front, the tin price was supported by the participation of players from China, South Korea, Japan, Taiwan and the United Kingdom,” he added.

At the opening bell, bids and offers were equal at 40 tonnes, while turnover was easier at 40 tonnes from 64 tonnes on Wednesday.

The price differential on the KLTM was at a discount of US$125 per tonne from US$105 per tonne previously.